WILLIAM DONALD SCHAEFER, Governor Ch. 236

(3)  Has annual expenditures of over $50,000; and

(4)  Has moneys disbursed and expended by a person or
body independent of the county government.

(c)  At a minimum, the rules and regulations required by
subsection (b) of this section shall provide for the examination
and audit to:

(1)  Be conducted by a certified public accountant in
the capacity of either an independent auditor or official auditor
of the county who shall be in compliance with the provisions of
[Article 75A of this Code] THE MARYLAND PUBLIC ACCOUNTANCY ACT or
by an auditing committee approved by the official auditor of the
county[.];

(2)  Determine whether tax funds have been received,
deposited and disbursed in accordance with approved
appropriations and State and local law[.];

(3)   Include the following financial statements:

(i) Balance sheet;

(ii) Statement of revenues;

(iii) Statement of expenditures and
encumbrances; and

(iv) Statement of changes in fund balance[.];
AND

(4)  Be completed and filed with the appropriate
county officials not later than 90 days following the close of
the fiscal year.

(d)  For a special district created by and situated within
the county with annual expenditures of less than $50,000, the
county shall require annual financial reports and shall require
an audit every 4 years, unless the county determines, on a
case-by-case basis, that more frequent audits are required.

(e)   If a special district subject to [subsections]
SUBSECTION (b) or (d) of this section does not submit a financial
report or audit report as required by the county, the county may
withhold the distributions of taxes imposed on behalf of the
special district until the financial report and/or audit report
is received.

(f)  At the time it forwards its audit report to the
Legislative Auditor, the county also shall forward copies of all
audit reports and financial reports received from the special
districts subject to [subsections] SUBSECTION (b) or (d) of this

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